Mesabi Metallics secures USD 150 million from Macquarie Group for Minnesota iron ore project

Mesabi Metallics has secured USD 150 million in financing from Macquarie Group to support the planned Q3 2026 startup of its world-scale Direct Reduction (DR) grade iron ore mine and pellet plant in Nashwauk, Minnesota.

Backed by the Essar Group, Mesabi Metallics is developing a new American source of DR-grade iron ore at a time when the United States is seeking to strengthen industrial supply chains and reduce dependence on imported raw materials.

"The financing follows Mesabi’s recently announced $520 million senior secured credit facility with Breakwall Capital, further reinforcing the strong momentum behind the project," it said in a statement.

Recently, the company received support from the US Export-Import Bank (EXIM). Located on more than 16,000 acres in Northern Minnesota, Mesabi Metallics is completing a USD 2.

5 billion DR-grade iron ore mine and pellet plant that will supply the next generation electric arc furnaces of American steelmaking.

"With more than 800 construction workers currently onsite, the project is one of the largest private sector industrial investments in Minnesota’s history. Essar Group has already invested more than $2 billion of equity into the project," it stated.